Question

1) One pay for performance strategic implication for health care providers with supporting rationale:
2) One bundled payment strategic implication for health care providers with supporting rationale:
3) In 100 words or less, describe two differences OR two similarities comparing/contrasting how value-based purchasing differs or is similar to bundled payments and pay for performance. Your choice as to whether you address similarities or differences (no need to address both similarities and differences)

Answer 1

Pay for Performance:

Providing quality health care to the population in a cost-effective way is very challenging throughout the world. The quality of care provided is directly proportional to the payment received by the providers. But, it was noticed that the traditional ways of payments like monthly salaries, the fee for services, bundled payments, etc. do not improve the quality of performance. So, new models of payments have been experimented in many countries to get high-quality care by financially rewarding the measurable performances. All such models of payments which are performance-based are collectively known as Pay for Performance.

Pay for Performance (P4P) is an approach to provide high quality, well-coordinated care by improving the performance of the health care providers through financial incentives. This model incentivize employees to improve their productivity. In this approach, the payment mechanisms provide implicit incentives for those performances which promote the attainment of health system objectives.

Pay for Performance will motivate employees to perform the best of their capabilities. Since the financial rewards are connected with their measurable sets of performances, each employee will strive to maximize their efforts for the achievement of the objectives. A well-defined statement of the objective which the system aims to achieve through P4P is very essential for the success of this model. The performance or expected outcome should be measurable. Performance metrics are very essential in this model. Accurate and timely performance criterion should be formulated. Designing financial reward also is very important. It is important to consider whether the reward is based on a comparison of employees at the same categories or based on the previous performance of the same employee or based on the total performance of the institution as a whole. P4P program should be aligned with the intrinsic motivation of the employees. If the P4P program is aligned with the professional objectives of the employees, then it will contribute to the achievement of the desired outcome.